Nora Sakari Case Analysis Essay

1036 Words Apr 22nd, 2011 5 Pages
●What would be the benefits and drawbacks of reconciling with Sakari? There are both benefits and drawbacks of reconciling with Sakari for Nora. The benefits are was follows. First, Nora was motivated by Sakari’s advanced technology and the possibility of acquiring it and replicating it in the future. Nora was interested in securing a share of the contract from TMB, as well as the technology to switch from telecom. Second, Compared to other larger size multinational companies, Sakari was prepared to work out customized products according to Nora’s needs, as other larger companies are less willing to provide custom-made products. Sakari’s networks were easily adjustable and could cater to large ex¬changes in urban areas, and small ones …show more content…
Moreover, the two companies differed on is the uncertainty and risk avoidance. Nora seemed more comfortable to take risks with the joint venture while Sakari was very conservative and higher risk avoidance. Last but not least, Sakari is more universalistic since they ignore the different living standards and think that the salary should be the same for the Finnish employees no matter where they work.
●What are your recommendations as a cultural mentor to the group? My recommendations as a cultural mentor to the group are as follows. To begin with, both partners of the joint venture should be culturally mindful. They should understand the culture of both the companies and countries. In this case, neither Nora nor Sakari have sufficient knowledge about each others culture as one expected. For instance, they didn’t aware that they have different communication styles as Nora is more high context and expressive while Sakari is low context and instrumental. Moreover, the decision-making styles are different due to the different power dimensions. While the Malays are very hierarchical society, so that Nora’s executive had the power to make the contractual decisions as they hold the centralized decisional power of the company. Sakari’s negotiators had to talk to the company board before they could make any decisions that went beyond the limits authorized by the board. Moreover, the Malays are more collectivism and interested in

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